Advanced Search
MyIDEAS: Login to save this paper or follow this series

Using Tax Incentives to Support Thermal Retrofits in Germany

Contents:

Author Info

  • Neuhoff, Karsten
  • Amecke, Hermann
  • Novikova, Alexandra
  • Stelmakh, Kateryna
  • Deason, Jeff
  • Hobbes, Andrew

Abstract

The German government has committed to reducing the primary energy demand of buildings by 80% by 2050 and to attaining a thermal retrofit rate of 2%. Achieving both goals will require deep thermal retrofits across the existing building stock. To meet this challenge, the government is exploring what role tax support options could play in encouraging thermal retrofits and ensuring that they deliver the necessary energy performance. The following options are being discussed: - Allow for the accelerated depreciation of investments in the thermal energy efficiency of buildings (further development of § 82a EStDV). For commercial owners and landlords, the net present value and the visibility of tax benefits would increase, thus increasing incentives for improving energy efficiency and compensating for the difficulties involved in passing investment costs to users. For private households, thermal retrofit costs could be made deductible as "special expenditures" and tax benefits would increase with the marginal income tax rate. - Offer tax credits. Currently, 20% of up to 6000 Euro in labor costs can be deducted from tax liability (35a German Income Tax Act, EStG). Expanding the volume and the types of qualifying deductions to cover material costs, and increasing the deductible share of the retrofit costs, could support thermal retrofits of owner-occupied buildings. In this paper, we evaluate international (Italy, Netherlands, and U.S.) experiences with tax benefits supporting thermal retrofits and draw upon the experience of the German KfW loans and grants program. --

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://econstor.eu/bitstream/10419/65870/1/Using-Tax-Incentives-to-Support-Thermal-Retrofit-Summary.pdf
Download Restriction: no

Bibliographic Info

Paper provided by ZBW - German National Library of Economics in its series EconStor Research Reports with number 65870.

as in new window
Length:
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:zbw:esrepo:65870

Contact details of provider:
Postal: Düsternbrooker Weg 120, 24105 Kiel / Neuer Jungfernstieg 21, 20354 Hamburg
Phone: +49 431 8814-1
Fax: +49 431 8814-520
Email:
Web page: http://www.econstor.eu/
More information through EDIRC

Related research

Keywords: thermal retrofit; tax credits;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:zbw:esrepo:65870. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.